We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What to Expect From Ross, Gap, & Foot Locker's Q2 Earnings
Read MoreHide Full Article
We are nearing the end of a quarterly earnings season that has seen surprisingly strong performances from retailers on the back of increased consumer spending. Retailers, from Walmart (WMT - Free Report) to Nordstrom (JWN - Free Report) have already posted impressive quarterly financial results, but let’s see what to expect from a few retailers still left to report.
Over 150 companies were scheduled to release their quarterly earnings results during the week of August 20, which included a slew of well-known retailers. Both Kohl’s (KSS - Free Report) and T.J. Maxx parent (TJX - Free Report) reported strong results on Tuesday, though KSS’ results weren’t impressive enough for investors who had pushed the stock up 45% already this year. Meanwhile, TJX’s same-store sales surged 6% and its foot traffic was up for the 16th consecutive quarter. Both firms also upped their fiscal year guidance.
Tuesday’s results followed similarly impressive quarters from Walmart (its quarterly sales rose at their fastest pace in more than a decade according to management), Nordstrom, Home Depot (HD - Free Report) , and other retailers. The retail surge helped show some investors that Amazon (AMZN - Free Report) related fears might have been a bit overblown. At the same time, the e-commerce giant’s expansion prompted nearly every retailer to improve.
Now it’s time to take a look at three more retailers to see what investors should expect.
Ross Stores has seen its stock price soar over 56% in the last year compared to its industry’s 37%. ROST stock has climbed 6% during the last month, which helped it touch a new 52-week and all-time high Tuesday. The off-price clothing retailer is also currently trading at 21.5X forward 12-month Zacks Consensus EPS estimates, which represents a discount compared to the S&P’s 17.3X and its industry’s 27.7X average.
Ross Stores is expected to see its Q2 revenues climb by 6.4% to hit $3.65 billion, based on our current Zacks Consensus Estimates. At the other end of the income statement, the company’s adjusted earnings are projected to reach $1.00 per share, which would mark a nearly 22% surge from the year-ago period. The California-based company is set to release its second-quarter financial results after the closing bell on Thursday, August 23.
Gap, which owns clothing retailers Old Navy, Banana Republic, and its namesake brand, has seen its stock price slip marginally over the last six months as it faces increased competition and tries to fight back against the rise of Lululemon (LULU - Free Report) and other athleisure firms with its Athleta brand. Despite GPS’ recent sideways movement, the stock is still up over 40% during the last 12 months.
Investors should be pleased to note that Gap is projected to see its adjusted Q2 earnings expand by over 24% to reach $0.72 per share. Meanwhile, the company’s quarterly revenues are projected to hit $3.99 billion, which would mark a roughly 5% gain from the year-ago period. Gap, which is currently trading at 12.1X our forward earnings estimates, is expected to report its quarterly earnings results after the closing bell on Thursday.
Foot Locker has been hurt by the shifting retail climate as the likes of Nike (NKE - Free Report) , Adidas (ADDYY - Free Report) , and many other sports retailers move away from wholesale toward their own e-commerce platforms. However, it has not been all bad for the athletic shoes and apparel firm. In fact, shares of FL have skyrocketed over 64% since Foot Locker stock plummeted to a roughly five-year low in the fall of 2017.
The New York-based retailer’s second-quarter revenues are projected to hit $1.76 billion, which would represent a 3.7% climb from the year-ago quarter. At the other end of the income statement, Foot Locker’s adjusted Q2 earnings are expected to pop by nearly 13% to hit $0.70 per share. Foot Locker plans to report its financial results before the market opens on Friday, August 24.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
What to Expect From Ross, Gap, & Foot Locker's Q2 Earnings
We are nearing the end of a quarterly earnings season that has seen surprisingly strong performances from retailers on the back of increased consumer spending. Retailers, from Walmart (WMT - Free Report) to Nordstrom (JWN - Free Report) have already posted impressive quarterly financial results, but let’s see what to expect from a few retailers still left to report.
Over 150 companies were scheduled to release their quarterly earnings results during the week of August 20, which included a slew of well-known retailers. Both Kohl’s (KSS - Free Report) and T.J. Maxx parent (TJX - Free Report) reported strong results on Tuesday, though KSS’ results weren’t impressive enough for investors who had pushed the stock up 45% already this year. Meanwhile, TJX’s same-store sales surged 6% and its foot traffic was up for the 16th consecutive quarter. Both firms also upped their fiscal year guidance.
Tuesday’s results followed similarly impressive quarters from Walmart (its quarterly sales rose at their fastest pace in more than a decade according to management), Nordstrom, Home Depot (HD - Free Report) , and other retailers. The retail surge helped show some investors that Amazon (AMZN - Free Report) related fears might have been a bit overblown. At the same time, the e-commerce giant’s expansion prompted nearly every retailer to improve.
Now it’s time to take a look at three more retailers to see what investors should expect.
1. Ross Stores (ROST - Free Report)
Ross Stores has seen its stock price soar over 56% in the last year compared to its industry’s 37%. ROST stock has climbed 6% during the last month, which helped it touch a new 52-week and all-time high Tuesday. The off-price clothing retailer is also currently trading at 21.5X forward 12-month Zacks Consensus EPS estimates, which represents a discount compared to the S&P’s 17.3X and its industry’s 27.7X average.
Ross Stores is expected to see its Q2 revenues climb by 6.4% to hit $3.65 billion, based on our current Zacks Consensus Estimates. At the other end of the income statement, the company’s adjusted earnings are projected to reach $1.00 per share, which would mark a nearly 22% surge from the year-ago period. The California-based company is set to release its second-quarter financial results after the closing bell on Thursday, August 23.
2. Gap (GPS - Free Report)
Gap, which owns clothing retailers Old Navy, Banana Republic, and its namesake brand, has seen its stock price slip marginally over the last six months as it faces increased competition and tries to fight back against the rise of Lululemon (LULU - Free Report) and other athleisure firms with its Athleta brand. Despite GPS’ recent sideways movement, the stock is still up over 40% during the last 12 months.
Investors should be pleased to note that Gap is projected to see its adjusted Q2 earnings expand by over 24% to reach $0.72 per share. Meanwhile, the company’s quarterly revenues are projected to hit $3.99 billion, which would mark a roughly 5% gain from the year-ago period. Gap, which is currently trading at 12.1X our forward earnings estimates, is expected to report its quarterly earnings results after the closing bell on Thursday.
3. Foot Locker (FL - Free Report)
Foot Locker has been hurt by the shifting retail climate as the likes of Nike (NKE - Free Report) , Adidas (ADDYY - Free Report) , and many other sports retailers move away from wholesale toward their own e-commerce platforms. However, it has not been all bad for the athletic shoes and apparel firm. In fact, shares of FL have skyrocketed over 64% since Foot Locker stock plummeted to a roughly five-year low in the fall of 2017.
The New York-based retailer’s second-quarter revenues are projected to hit $1.76 billion, which would represent a 3.7% climb from the year-ago quarter. At the other end of the income statement, Foot Locker’s adjusted Q2 earnings are expected to pop by nearly 13% to hit $0.70 per share. Foot Locker plans to report its financial results before the market opens on Friday, August 24.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>